What home insurance covers, and what it usually leaves out

Many people buy home insurance once and never look at it again until something goes wrong. That is exactly when the surprises appear. Here are the basics of what you are actually buying.

Building and contents: two different things

• Building (continente in Spanish policies): the property itself. Walls, floors, ceilings, fixed water, electricity and gas installations, and, depending on the policy, things like doors, windows or a terrace.
• Contents (contenido): what is inside. Furniture, appliances, clothes, electronics and, within limits, valuables.

If you own the property, you will usually want both. If you rent, contents and liability cover are often enough, unless your rental contract says otherwise.

What is usually covered

Every policy is different, but these covers are common:

• Fire, explosion and lightning.
• Water damage, for example from a burst pipe.
• Theft and vandalism, with conditions on locks, doors or alarms.
• Weather events, such as strong wind, heavy rain or hail, within the limits set by the policy.
• Liability: if you accidentally cause damage to someone else, for example a leak that floods your neighbour's flat.
• Broken glass and, sometimes, home assistance (emergency locksmith, plumber, electrician).

What is usually left out

• Wear and tear and lack of maintenance. A pipe that has been deteriorating for years, or damp caused by a slow, continuous drip, is often excluded or limited.
• Valuables above the agreed limit, such as jewellery, art or collections, if they have not been declared.
• Intentional damage by the policyholder.
• Flood, earthquake and other extraordinary events: in Spain these are covered by the Consorcio de Compensación de Seguros when the policy includes that cover, under its own conditions.
• Excess (deductible): a part of the damage you pay yourself, if the policy sets one.

Three situations you should declare

1. A home left empty for part of the year.
2. Holiday letting or renting by the room. If you do not declare it, the policy may not respond.
3. Major renovations or extensions, which change the value of the property.

What to check before you sign

Read the particular conditions (where your details, sums insured and excesses are) and the exclusions. Check that the insured value of the property and its contents is right: it matters more than it seems, and I will cover it in an upcoming article.

If you have questions, tell me and we will go through them together.